Mr. Seán Finan:

I will begin by thanking the Chairman and the committee for giving us the opportunity to present to the joint committee. I am delighted to be joined by Macra na Feirme chief executive, Mr. Denis Duggan.

We are pleased to be here and to get this opportunity to contribute to the discussion on Brexit. As young farmers we were very disappointed, as the committee was, by the democratic decision taken by the people of the United Kingdom back in June to leave the European Union. From our point of view, the decision does not make economic or political sense. The farming and agricultural sector and young farmers are particularly vulnerable following the result due to our dependence on the United Kingdom as an export market for our main commodity products.

As a food exporting nation, we have more to lose than any other country following the result. The value of the UK market to Irish food exporters has been well articulated by previous speakers. The consequences and fallout from Brexit are the biggest challenge our industry will face in our generation. In the past we have had the BSE, foot and mouth disease and others crises, but this is bigger than all of them together. For this reason, Macra na Feirme is strongly calling on the Government to put on the green jersey and fight to protect the future of the industry, our livelihoods and, as young farmers, our future farming careers. The medium to long-term impact of Brexit for Ireland and young farmers will not become clear for some time until negotiations get under way between the United Kingdom and the European Union.

Macra na Feirme is an active member of the European Council of Young Farmers, CEJA, and we will work with our European counterparts on Brexit. Young farmers are worried about the impact on their businesses into the future in the short term with the current fluctuations in the value of sterling and the uncertainty this will bring. Any fluctuations in the value of sterling will cause problems in certain sectors, particularly forestry and the mushroom sector, although it is keenly felt across all other sectors, including the beef and the alcoholic beverage industries. Young farmers are already under a lot of financial pressure due to pressure on commodity prices. Processors cannot be allowed to use the current fluctuations in sterling to cut prices paid to farmers who are already under pressure. This will only add further to the current difficulties being experienced on the ground.

The negotiations on Brexit and on any future trade agreements between Ireland and the United Kingdom will be between the European Union and the United Kingdom. This is a real concern for young farmers as we will not be able to negotiate directly our own trade deals with the United Kingdom until such time as broader terms are agreed at an EU level. The protection of the Irish agriculture sector needs a bilateral trade agreement with the United Kingdom with none or minimal tariffs. This needs to be the top priority of the Irish Government in future negotiations.

Young farmers farming along the Border do not want to see a hardening of the Border between Ireland and the North because of some of the businesses they work with and the value and volume of product that moves over the Border, which has been articulated by previous speakers. Many young farmers' activities are cross-Border.

As young farmers, we have the most to lose from Brexit. We are establishing our careers in the sector and are more vulnerable in the short term due to the uncertainty and volatility as we do not have the financial cushion built up to protect us from this volatility. Macra na Feirme calls on the Chairman and the committee to articulate strongly our views and concerns at a government level. Macra na Feirme calls very clearly for the minimisation of any barriers to trade and for no tariffs to be imposed. We demand continuation of free, or as free as possible, movement of agricultural products between Ireland and the United Kingdom, especially between Ireland and Northern Ireland. We call for specific attention and provision to be made for cross-Border trade.

Young farmers are frustrated by the prospect of additional labelling rules that could potentially occur with trade between the United Kingdom and the European Union. Should additional regulations apply, Macra na Feirme would call for resources to be put in place to make the transition to new labelling as easy as possible for all farmers. Increases in trade costs will follow any extra labelling criteria, so provisions need to be put in place to prevent farmers bearing the brunt of any new costs.

It has been mentioned by previous speakers that Ireland imports approximately €3.5 billion worth of agricultural products from the United Kingdom. Much of this comes from Northern Ireland, is processed in Ireland and is then added to our overall export figures. Adding costs to this trade is not in the interests of consumers, producers or the economy as a whole.

Diversification of trade is very important, and while €4.4 billion, or 40%, of our agricultural exports still go to the United Kingdom, we have diversified our trading significantly since joining the European Union. In 1973, almost 70% of our food exports went to the United Kingdom. This represented about €350 million out of a total of €500 million. Today Irish exports go to more than 120 countries and are valued at about €11 billion. Expansion of access to new markets is very important, and trade missions should be accelerated further. It is important to relay the message that Ireland is not part of Brexit and is open for business. Macra calls for additional resources to be provided to bodies such as Bord Bia to sustain access to new global markets. Decreasing our dependence on agri-trade with the United Kingdom will help to lessen the impact of Brexit.

Over recent weeks, young farmers throughout the country have raised some very specific queries which I will quickly run through with the committee. They include the implications of Brexit for EU trade negotiations such as the Mercosur and TTIP negotiations which have been conducted to date on the basis of an EU of 28 member states; consumer confidence and the potential risk in the United Kingdom and its impact on Irish products; differences in EU and UK regulations regarding animal feed such as genetically modified, hormone-treated and antibiotic-treated feed; country of origin labelling and the United Kingdom's approach to this issue following its exit from the European Union; environmental targets, specifically water quality issues and their cross-Border implications; the implications of Brexit for EU research funding, particularly for cross-Border projects; issues associated with the transit of equipment, feed and livestock across any EU-UK border, which has been articulated by some members of the committee; and cost competitiveness and the cost of doing business in Ireland, which need to be considered in more detail. We have higher costs than many of our EU counterparts in areas such as insurance, energy, credit and legal costs.

Macra na Feirme welcomes the establishment of the consultative committee of stakeholders on Brexit and the all-island agri-dialogue which will take place later this week. We will take part in these initiatives, which will bring all parties in the agrifood industry together to discuss updates and developments surrounding Brexit. The consultative committee will also discuss future negotiations and issues of mutual concern to the agrifood industry following the United Kingdom's decision to leave the European Union in the recent referendum. We in Macra na Feirme look forward to working with the Minister and the committee and all its stakeholders.

A part of us all would love the United Kingdom to reverse its decision. We in Macra na Feirme work closely with our five nations colleagues: the National Federation of Young Farmers Clubs in England and Wales, the Scottish Association of Young Farmers Clubs and the Young Farmers Clubs of Ulster. I recently travelled with a colleague to a Scottish Association of Young Farmers Club conference in Aberdeen. Having also attended a meeting on Brexit in Northern Ireland hosted by the Young Farmers Clubs of Ulster, I can tell the committee there were no indications from either event that the United Kingdom's decision of Brexit would be changed. The main discussion point and focus of both events was the opportunities for young farmers following Brexit to supply the home UK market. At both events there was an expectation that payments similar to those under the current CAP and access to the free market would be maintained. This is all unknown. This match has only really kicked off. There is a long way to go and the result is far from certain, and none of us, both here and in the United Kingdom, really knows where this will end up.